Bitcoins - about to hit $5,000 per coin today!

[Griffith]

I agree - maxies play an important role. Much like with any movement rehiring a mental mindset shift, you need extremists to push the message - whether is veganism, black rights, marijuana legalization, etc.

But further, if you think things just a step or two ahead, you will realize that it is in the collective interest of every Bitcoiner to both educate and advocate on Bitcoin, and to defend against any pretend Bitcoin.

Cult of peace.

[Mayday]

Bitcoin maxies have thought things through the ultimate logical conclusion, which is either you have an infinite number of coins, and all are essentially valueless as a result, or we collectively agree to see shit coins for what they are, and all put our efforts into Bitcoin.

I think you and I agree pretty much on most of it, just slight variances here and there.

The problem with their end conclusion is it disregards how you get from A to B. Not embracing that path can lead to them not getting there at all.

Bitcoin is still king. Maxis are salty because people bought jpegs of rocks and didn’t pump Bitcoin bags to 220k. They wanted to dump on retail but the pump never came and the majority of them got stuck. Hundreds of millions lost, they want to blame anyone but themselves. It’s just anger they got it wrong IMO.

[OneMoreRep]

Get ready boys, imminent currency collapse is now all but set to happen!

Several major banks announce coordinated action to increase US dollar liquidity provision in the global market through swap lines. The banks that will participate include: US Federal Reserve, Bank of Canada, Bank of England, Bank of Japan, Swiss National Bank and European Central Bank.

Swap lines are essentially agreements between banks to exchange currency at predetermined rates. This is an 11th hour attempt to do everything and anything to prop up the US dollar and make it more accessible for purchase. The only logical reason I can imagine they have for doing this that they are likely VERY worried about a currency collapse.

Look out below, inflation will skyrocket and QE 'till infinity.

Your cryptos will blast off soon!

"1"

[obsidian]

I mentioned earlier that banks should have a business model where they hold 100% of deposits in reserve. I theorized that such a bank would do great business and people would trust them.

Well, I guess Narrow Bank tried to do that. But they were not granted a Fed account. Seems like the Fed does not want safe banks. The whole thing is rotten!

https://www.bloomberg.com/opinion/articles/2019-03-08/the-fed-versus-the-narrow-bank#xj4y7vzkg

https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/narrow-bank-challenges-traditional-industry-model-but-fed-pushes-back-49204495

[obsidian]

Billionaire bets US will see hyperinflation in 90 days...

[dunkin donuts]

Billionaire bets US will see hyperinflation in 90 days...

What will be the price of gold?

[obsidian]

What will be the price of gold?

Very high if hyperinflation occurs. The thing about hyperinflation is it is very sudden. A matter of days. No real warning.

[loco]

These failing banks could definitely have managed things a lot better.

Ironically however, crypto might have indirectly caused the current banking crisis, putting fear in depositors, taking away their confidence in the banking system, thus creating liquidity issues.

The crypto ‘contagion’ that helped bring down SVB

SVB had no direct link to FTX, but was not immune to the broader contagion. Its depositors, including tech startups, crypto firms and VCs, started burning their cash reserves to run their businesses after venture capital funding dried up.

https://www.politico.eu/article/crypto-help-bring-down-svb-silicon-valley-bank-ftx/

[gib]

Bitcoin, not crypto.

[gib]

What will be the price of gold?

Mr Anabolic would be rolling in his grave...

[dunkin donuts]

Very high if hyperinflation occurs. The thing about hyperinflation is it is very sudden. A matter of days. No real warning.

good thing i stocked up on gold then. I am not brave enough to go big on bitcoin

[dunkin donuts]

It is still wise to keep about a years expenses worth of cash tho right? I mean just in case for some reason you lose your source of income and the price of gold/BTC happens to take a big hit at the same time you would really not want to be without cash and have to sell your precious gold/BTC at a low price. Or load up anyway but also have some smaller bars/coins to increase liquidity?

[gib]

It is still wise to keep about a years expenses worth of cash tho right? I mean just in case for some reason you lose your source of income and the price of gold/BTC happens to take a big hit at the same time you would really not want to be without cash and have to sell your precious gold/BTC at a low price. Or load up anyway but also have some smaller bars/coins to increase liquidity?

Depends on what country you are in, and what type of cash you are referring to. In some countries, where cash is devaluing at 50% a year, many people don't want to have much cash hidden away at all. In the US, where cash is losing its purchasing power 7-15% a year, depending on how you measure it, many are still prepared to hold it. There is is also the issue of where to store that cash, especially if you are concerned about banks. Bitcoin of course solves that. But yea, I would suggest holding some physical cash hidden away at home.

For the above reasons, many are also opting for gold (and I think gold will do well in a time of crisis). Of course gold also his its risks and weaknesses, and so for those reasons, many are now increasingly opting to hold in Sats.

Interesting times...

[loco]

In the US, where cash is losing its purchasing power 7-15% a year, depending on how you measure it, many are still prepared to hold it.

Still prepared to hold it?  We need cash to pay bills, buy food, buy assets, pay for vacations, pay the mortgage on investment properties, pay for maintenance and repairs of investment properties, pay real estate attorneys, pay insurance premiums, pay taxes, pay accountants, pay property managers, etc.

BTC is not accepted for any of these, only USD.

In the US, wise and prudent investors don't keep cash just lying around doing nothing out of fear to invest it, and they certainly don't risk keeping it at home out of fear of the banking system.

[gib]

Still prepared to hold it?  We need cash to pay bills, buy food, buy assets, pay for vacations, pay the mortgage on investment properties, pay for maintenance and repairs of investment properties, pay real estate attorneys, pay insurance premiums, pay taxes, pay accountants, pay property managers, etc.

BTC is not accepted for any of these, only USD.

In the US, wise and prudent investors don't keep cash just lying around doing nothing out of fear to invest it, and they certainly don't risk keeping it at home out of fear of the banking system.

Loco, you are not stupid, for sure. But what you fail to have is foresight. Try thinking a step or 2 ahead. What people really need is a medium of exchange and a store of value. Fiat currency was used as it was the least worst and most convenient of other options. Technology has now provided with us with a superior option. New technology takes time to adopt, but make no doubts about it - it's happening...

[loco]

Loco, you are not stupid, for sure. But what you fail to have is foresight. Try thinking a step or 2 ahead. What people really need is a medium of exchange and a store of value. Fiat currency was used as it was the least worst and most convenient of other options. Technology has now provided with us with a superior option. New technology takes time to adopt, but make no doubts about it - it's happening...

Sorry, but your "superior option" is not accepted.  Only good old fiat USD is accepted.

[gib]

Sorry, but your "superior option" is not accepted.  Only good old fiat USD is accepted.

You can store your wealth in Bitcoin, and then simply convert to fiat specific for a single transaction via a Bitcoin Visa card for anyone who still prefers to receive fiat as a payment instead of Sats. However, as we have already seen in various countries, when people start to lose faith in the local currency, they much prefer Bitcoin to fiat.

[loco]

You can store your wealth in Bitcoin

And then watch it plummet at random times like it has many times before?  BTC is far more volatile than USD and far more volatile than US stock index funds.

, and then simply convert to fiat specific for a single transaction via a Bitcoin Visa card

For a steep fee.  No thank you.

for anyone who still prefers to receive fiat as a payment instead of Sats. However, as we have already seen in various countries, when people start to lose faith in the local currency, they much prefer Bitcoin to fiat.

It's not a matter of preference.  My "superior" BTC is not accepted anywhere I do business and spend my money, but my "inferior" fiat USD is accepted everywhere.

[Flexacon]

You can store your wealth in Bitcoin, and then simply convert to fiat specific for a single transaction via a Bitcoin Visa card for anyone who still prefers to receive fiat as a payment instead of Sats. However, as we have already seen in various countries, when people start to lose faith in the local currency, they much prefer Bitcoin to fiat.

That's not correct. They prefer one of the USD stablecoins

Maybe in a bull market the preference switches to bitcoin, but it's just as likely they'll switch to an alt just like they did in the previous bull market.

[Griffith]

That's not correct. They prefer one of the USD stablecoins

Maybe in a bull market the preference switches to bitcoin, but it's just as likely they'll switch to an alt just like they did in the previous bull market.

Correct.

In many developing countries there are strict foreign exchange laws and it is not possible to buy foreign currency unless travelling overseas. The cheapest and easiest way to get around this is to buy stablecoins on a crypto exchange.

[gib]

Correct.

In many developing countries there are strict foreign exchange laws and it is not possible to buy foreign currency unless travelling overseas. The cheapest and easiest way to get around this is to buy stablecoins on a crypto exchange.

This, and the above comment from Flex, are partially correct. Apart from the points made, stable coins are also desired as they can easily transferred without deduction of FX commission by an intermediary. And they can help skirt FX controls. And they are seen as avoiding bank intermediary country party risk. And of course in many countries a USD stable coin will hold it value better than a local depreciating currency.

The implications for Bitcoin are of course as follows:

Once people get comfortable with wealth stored in a tokenized form, and the benefits thereof, they will look one step ahead as to which digital currency preserves value best. The USD is of course the "least worst" choice among a 200+ fiat currencies, all of which are declining in value over time. So the next logical step is to store wealth in BTC, and use stable coins for transactions, unless of course Sats are requested (which will of course happen over time, as sellers want the most valuable asset to hold in terms of wealth preservation, vs a declining currency). This will take time, but it will enviably happen as people collectively figure out the relative long term decline trend  in value of the USD vs BTC over time. And that my friends, it where the opportunity for us lies.

A smart investor always thinks a step or two ahead...

[Mayday]

Get ready boys, imminent currency collapse is now all but set to happen!

Look out below, inflation will skyrocket and QE 'till infinity.

Your cryptos will blast off soon!

"1"

Collapse to where?

Has Mr Anabolic taken over your account?

This is the YOLO I warned about.

Everyone gunna think they are front running the Fed  then the realisation will hit down the road that providing bank liquidity is not the same as $3,000/mth child rebates……

Since when does providing liquidity for treasuries= people are buying new iPads and TVs?

Deflationary event before inflationary policy. Where is the deflationary event? We haven’t had one so why are people salivating and calling for a rocket ship to the moon?

[Griffith]

This, and the above comment from Flex, are partially correct. Apart from the points made, stable coins are also desired as they can easily transferred without deduction of FX commission by an intermediary. And they can help skirt FX controls. And they are seen as avoiding bank intermediary country party risk. And of course in many countries a USD stable coin will hold it value better than a local depreciating currency.

The implications for Bitcoin are of course as follows:

Once people get comfortable with wealth stored in a tokenized form, and the benefits thereof, they will look one step ahead as to which digital currency preserves value best. The USD is of course the "least worst" choice among a 200+ fiat currencies, all of which are declining in value over time. So the next logical step is to store wealth in BTC, and use stable coins for transactions, unless of course Sats are requested (which will of course happen over time, as sellers want the most valuable asset to hold in terms of wealth preservation, vs a declining currency). This will take time, but it will enviably happen as people collectively figure out the relative long term decline trend  in value of the USD vs BTC over time. And that my friends, it where the opportunity for us lies.

A smart investor always thinks a step or two ahead...

We are correct in our statements.

The vast majority of people in developing countries want hard currencies in order to preserve their wealth and hedge against depreciating local currencies.

They cannot simply go into a foreign exchange store and buy USD, Euros, Pounds etc.

They might be able to open a foreign exchange account at certain banks, but there is a lot of red tape and conditions and the fees are high, making it impractical for most people.

Besides the black market, by far the easiest and cheapest way is on a crypto exchange.

Most are looking to preserve their savings, relative to the major currencies and maintain some purchasing power globally, instead of losing a percentage annually to local depreciation and another percentage to local inflation.

Another advantage of stablecoins for people in developing countries is that they can also earn interest, which can give them higher real interest rates compared to investing in their local banks.

And stablecoins use Etheruem.

[gib]

We are correct in our statements.

The vast majority of people in developing countries want hard currencies in order to preserve their wealth and hedge against depreciating local currencies.

They cannot simply go into a foreign exchange store and buy USD, Euros, Pounds etc.

They might be able to open a foreign exchange account at certain banks, but there is a lot of red tape and conditions and the fees are high, making it impractical for most people.

Besides the black market, by far the easiest and cheapest way is on a crypto exchange.

Most are looking to preserve their savings, relative to the major currencies and maintain some purchasing power globally, instead of losing a percentage annually to local depreciation and another percentage to local inflation.

Another advantage of stablecoins for people in developing countries is that they can also earn interest, which can give them higher real interest rates compared to investing in their local banks.

And stablecoins use Etheruem.

Partially correct. It is true that some stablecoins make use of Eth. Others such as USDT are issued on both ethereum and bitcoin blockchains. And of course we now see stablecoins issued o other blockchains suchas  Solana, and Algorand. They key thing to remember on all this is that BTC is the base layer of value.

[Griffith]

Partially correct. It is true that some stablecoins make use of Eth. Others such as USDT are issued on both ethereum and bitcoin blockchains. And of course we now see stablecoins issued o other blockchains suchas  Solana, and Algorand. They key thing to remember on all this is that BTC is the base layer of value.

Ethereum provides the majority of stablecoin supply.

Main stablecoins using Ethereum:

Tether (USDT)
USD Coin (USDC)
Binance USD (BUSD)
Dai
TrueUSD

Mastercard and Visa are also planning to use USDC.